Invesco Acquires Korea Senior Living Portfolio in JV With Local Operator Caredoc

Invesco is the latest global player to bet on South Korea’s senior living market, with the US asset manager on Tuesday announcing its acquisition of a three-asset portfolio under a joint venture with senior care specialist Caredoc.

The new platform, dubbed Care Operation, was launched in late 2024 and seeded with the trio of senior housing properties in the Seoul metropolitan area, Invesco said. Under the partnership with Caredoc, Invesco’s real estate arm has made a minority investment and agreed to acquire a multi-tranche portfolio of senior housing assets, which will be managed by Care Operation.

The partnership addresses a growing need for purpose-built senior housing in South Korea as the sector undergoes a generational shift driven by an ageing population, said Calvin Chou, head of Asia Pacific for Invesco Real Estate.

“The senior care economy is a high-conviction investment theme for IRE, which is why we are investing in assets and businesses that will meet the future needs of this growing market,” Chou said.

First of Its Kind

Care Operation represents the first partnership between a Korean senior care platform and a global investor, according to Atlanta-based Invesco. Caredoc was selected as a partner due to its unique position in the Korean senior care market and high-quality services, the asset manager said.

Invesco confirmed that it has “a strong pipeline” of target acquisitions and aims to assemble a significant asset portfolio in the years ahead.

South Korea is one of the fastest-ageing nations in the world, Invesco noted in a research report, with the segment of the population 65 years or older making up more than 20 percent this year and expected to double in size by 2040.

The country’s senior living sector has attracted other global and domestic players. US fund manager Warburg Pincus revealed earlier this month that it was partnering with SK D&D, a property development unit of Seoul-based conglomerate SK Group, and its asset management unit D&D Investment to acquire and develop senior housing in the Greater Seoul area.

Seoul-based living sector management firm GH Partners announced in February last year that it had teamed with US operator Thrive on a joint venture to offer management services in South Korea’s senior living sector.

In December 2023, Korean real estate fund manager Mastern Investment Management said it had partnered with local developer STS Development to raise at least $150 million from Asian investors for Korea’s first senior housing development fund.

Around the Region

Invesco’s foray into the Korean senior living market follows last month’s announcement that the firm had formed a joint venture with Tencent-backed apartment management platform Ziroom to invest in and operate rental housing in China.

Invesco and Ziroom are set to launch the JV with a 1,500-room development in Beijing’s Shijingshan district, which they estimate will require investment of RMB 1.2 billion ($165 million). The purpose-built rental housing on the western side of the Chinese capital is expected to be completed in 2027.

In addition to its China rental housing strategy, Invesco teamed with Tokyo-based Alyssa Partners in 2023 to acquire a set of 15 Japanese apartment buildings. In Australia, Invesco joined forces with Sydney-based builder Stockland last May to develop and hold an initial portfolio of three land lease community assets.